Silverlake Axis posts 64% increase in Q1 profit after tax on higher revenue
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Paige Lim
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MAINBOARD-LISTED Silverlake Axis (SAL) posted a 64 per cent increase in profit after tax for its first quarter ended Sep 30, 2022 to RM57.6 million (S$17.3 million), up from RM35.2 million the year before.
Earnings per share stood at RM0.0228 for the period, up from RM0.0132 a year ago.
Revenue for the quarter rose by 23 per cent year-on-year to RM188 million, from RM152.3 million the previous year. This was due to growth in software licensing, hardware sale, insurance ecosystem transactions and services, and retail transactions processing, the group said in a business update.
In particular, revenue from its software-as-a-service (SaaS) segment rose 82 per cent to RM13.1 million, up from RM7.2 million recorded in the same period last year. Revenue from its cloud computing segment rose 26 per cent to RM17.3 million, up from RM13.7 million the year before.
SaaS and cloud computing currently comprise 7 and 9 per cent of the group’s total revenue respectively.
Total expenses in the first quarter were up 20 per cent to RM51.1 million, from RM42.6 million the year before. These were mainly attributable to a higher spending in marketing, business development and brand awareness. Further investments in internal improvement projects and higher investments in human resources management added to total expenses, SAL said.
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The group also has a pipeline of deals worth RM2.1 billion in total gross value. It has contract wins in Q1 totalling RM136.2 million, with currently RM282.3 million deals in categories “that have a high probability of closure”, it added.
Looking ahead, the group said it will maintain and continuously grow revenue from its existing clients’ base, while focusing on helping clients and new clients in their business and IT transformation with its suite of solutions.
It will also be forming new key partnerships to extend the adoption of its suite of banking solutions, as well as focusing on growing its insurance and insurtech business.
Shares of SAL closed at flat at S$0.315 on Monday, before the release of the business update.
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